Bitcoin has set a new all-time high (ATH) beyond the $104,000 mark in the past day, but on-chain data shows that investors are still unwilling to sell.
Netflow Exchange Bitcoin has been negative during the latest Rally
As described by an analyst in CryptoQuant Quicktake mailBitcoin has continued to leave exchanges recently. The on-chain relevance metric here is the “Netflow Exchange” which, as the name suggests, monitors the net amount of BTC that goes in or out of the wallets connected to centralized platforms.
When the value of this metric is positive, it means that the investors are making net investments to the exchanges. Since one of the main reasons why holders use these platforms is for sales-related purposes, this kind of movement can have a bearish effect on BTC.
On the other hand, the negative sign means that more exchange flows occur than inflows. Such a movement can be a sign that investors want to keep their coins in the long term, which can be natural for the price of the asset.
Now, here is a chart that shows the movement to Netflow Exchange Bitcoin over the last two years:
As shown in the graph above, the Bitcoin Exchange Netflow has seen negative spikes in the past month or so, suggesting that some large withdrawals have been made.
This net outflow spree has come even though the digital currency has seen a massive run to new ATHs. The record shows that things were not like this at the gathering in the first quarter of this year.
Outflows were certainly happening back then, but there were also distinct inflow spikes in between, meaning there was demand to sell the asset.
Recently negative Exchange Netflow has maintained for Bitcoin through the latest rally beyond $100,000, a sign that investors are still unwilling to part with their BTC even at these high prices.
If this trend continues, this race may still have more room to run. However, it remains to be seen how long the conservatives can remain silent.
In general, the higher the investors' profits, the more likely they are to participate in a big sale. Therefore, with Bitcoin continuing to perform well, it may only be a matter of time before a major profit spree occurs.
BTC price
Bitcoin has finally broken free from the recent consolidation level with an increase of over 7% in the last 24 hours. The fund briefly broke above the $104,000 mark in this rally, but its price has since moved back to $103,500.
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